Cirrus stock slides as analyst frets Apple iPhone weakness

Shares of Cirrus Logic Inc.

CRUS, -3.98%

a supplier to Apple Inc. [s; aapl], plunged further in premarket trading Tuesday after the company’s quarterly revenue and outlook fell short of expectations. The company, which derived 86% of its revenue from Apple during the latest quarter, cited unexpectedly soft smartphone demand toward the end of the period. Its stock is down 15% in early trading. Analysts at Needham cut their rating on Cirrus shares to hold from buy following the earnings release. They believe Cirrus has some potential catalysts in its future, including a greater presence in Android phones, but they’re cautious given talk that Apple has meaningfully slashed its iPhone X production orders. “While we don’t like downgrading at the bottom we see little in the way of upside until there is more clarity on the stabilization of Apple’s iPhone builds and tangential evidence of Cirrus’ non-Apple business impacting the model,” wrote the analysts, led by Rajvindra Gill. Shares of Cirrus are down 13% so far in 2018, while the S&P 500 has fallen 0.9%.

Source link

Post Comment